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The Customs and Trade Facilitation Reauthorization ActJuly 19, 2006

On July 13, 2006, U.S. Senators Chuck Grassley (R-Iowa) and Max Baucus (D-Mont.) introduced S. 3658, the “Customs and Trade Facilitation Reauthorization Act” (“CTFRA”), which aims to improve trade security, while simultaneously facilitating the free flow of legitimate commerce. The bill proposes enhancing trade facilitation by increasing authorizations for additional personnel at all U.S. ports, and for trade facilitation and enforcement within the Bureau of Customs and Border Protection (CBP) and Bureau of Immigration and Customs Enforcement (ICE). With regard to security, the proposed legislation would require CBP to plan for the swift resumption of trade in the event of a transportation disruption that could harm the national economy.

Grassley and Baucus are Chairman and Ranking Member of the Senate Finance Committee which has jurisdiction over the revenue functions, commercial operations and trade facilitation, regulation and enforcement functions of CBP and ICE. The Finance Committee last authorized customs and trade functions in the Trade Act of 2002. Both members cited the need for such legislation:

Containerized traffic at American ports is expected to double by 2010 and threats are growing every day. But national security and economic prosperity through trade are not mutually exclusive interests. It is absolutely possible, and essential, to make trade both secure and efficient.

Specifically, the legislation would:

Require, within one year, an assessment of nonintrusive container scanning in foreign ports;

Add personnel for all U.S. ports of entry;

Require the Commissioner of Customs, within one year, to develop a trade resumption plan:

To be routinely exercised with Federal, state, local officials and private stakeholders; and